Integrating Remote Sensing Data In Crop Insurance: A Step Towards Sustainable Information System

Abstract

Consistent crop information is vital for the survival of the crop insurance sector. Crop insurance depends on historical crop information, weather information, meteorological information, and farmers' details. Such data are scattered, inconsistent, low quality, and costly. The imperfect market conditions in India have resulted in an adverse claims ratio that has forced insurance companies to exit (Bera, 2019). This paper proposes an integrated sustainable crop insurance information system that bridges the gap between data and the insurer. The framework provides the assimilation of crop details, quality satellite data, and actuarial models for crop yield estimation. The information system connects the insurer and insured which facilitates a transparent exchange of information and a step towards sustainable development. Incorporation of advanced technology, artificial intelligence and machine learning overcome the problem of traditional crop insurance. The integrated approach improves the crop insurance pricing, achieve farmers' need through feedback. The proposed information system is of regulatory importance as cuts the administrative costs and maintains farmers' information repository. Employment of information systems will improve crop insurance market penetration, farmers participation and thereby promote stability in the crop insurance sector